EPFO, HUDCO to ink pact for housing subsidy under PMAY

Retirement fund body EPFO will sign today a pact with the Housing and Urban Development Corp (HUDCO) to enable members of its housing scheme to avail subsidy and interest subvention under the Pradhan Mantri Awas Yojana.

Under the housing scheme, the Employees Provident Fund Organisation (EPFO) allows its subscribers from societies for withdrawing up to 90 per cent of their EPF accumulations to buy homes.

“As part of the government commitment for ‘housing for all by 2022’, the EPFO is signing a Memorandum of Understanding (MoU) with HUDCO on June 22, 2017,” an official statement said.

According to statement the MoU will be signed in the presence of Labour Minister Bandaru Dattatreya and Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu.

Talking about the pact, EPFO’s Central Provident Fund Commissioner V P Joy told PTI that the agreement is regarding coverage of EPFO subscribers under the Pradhan Mantri Awas Yojana by providing them various benefits like cheaper loans for buying homes.

Last month Dattatreya had made it clear that the EPFO will not construct houses for its subscribers but would act as a facilitator so that the members can buy homes.

The labour ministry intends to facilitate at least 10 lakh subscribers in the next two years by allowing them to use 90 per cent of EPF accumulations to make down payments to buy houses and use their accounts for paying EMIs of home loans.

In April this year, the EPFO had amended the EPF Scheme to enable the subscribers to make down payment to buy homes and pay EMIs through the EPF account.

The minister had said, “The scheme (withdrawal of 90 per cent of EPF) will be aligned with the Urban Development Ministry (programmes) and other organisations because the Centre is also giving subsidy of Rs 1.5 lakh to weaker sections (to buy houses).”

He was of the view that since the government is also providing interest subsidy for certain sections of people for buying houses and all benefits can be clubbed together.